The signal that Chrysler would repay $7.5B of its government bailout signified a rebound from the difficulties it experienced during the economic downturn. Analysts saw Chrysler on the verge of collapse two years ago when they were bailed out of bankruptcy with loans from the American and Canadian government.

Chrysler is currently negotiating with such financial entities as Bank of America, Citigroup, Morgan Stanley, and Goldman Sachs to refinance that chunk of its bailout. This refinancing will be supplemented with bond sales. The push to refinance has come harder in the last six months after it was revealed Chrysler paid out $1.2B in interest charges on the bailout loan in the course of the year. It is their feeling they can get a better rate on the open market.

Since the 2009 downturn for Chrysler they have managed to cut many expenses and are enjoying a resurgence in popularity on newer models. The new Jeep Grand Cherokee SUV is an especially popular vehicle that is helping to bolster the recovering company.

The company has not turned a profit since it left bankruptcy protection in June of 2009. Chrysler posted a loss of $652 million for the last year. Refinancing and paying the government back a large chunk of the bailout loan should put the company back into the green.

Treasury Secretary Timothy Geithner stated the government is looking forward to severing its ties with Chrysler as soon as possible. Though the government is looking to get the maximum return that it can for taxpayers on their investment, this want is offset by the fact that the bailout was not to turn a profit. The government bailout was posted to help save the jobs of American workers.

Chrysler received a total of $10.5B in aid from the United States government approximately two years ago. In that time, they have been able to make payments with regularity. Refinancing is expected to pay off an additional $5.9B from the balance of the loan. The final sum on the balance will be approximately $2B.

More of that repayment to the government could come when it sells the 8.6% ownership stake it currently has in a Chrysler IPO. The United Auto Workers are planning to sell their 59.2% stake in Chrysler to help pay for retiree health bills. Fiat SpA is expected to buy a $1.3B stake in Chrysler and receive an additional 16% stake which brings its total to 46%.

Once Fiat begins production of a 40mpg vehicle in the United States, it will receive another 5% share of Chrysler which will make Fiat a majority stockholder.

Franchise opportunities are abound in the United States, where the American dream is often obtained by franchising an already successful business or product. For many automobile dealers across the United States, an opportunity to continue living the American dream was handed out this week in the form of a Fiat franchise.

Fiat is an Italian automobile company founded in 1899. The name Fiat is actually an acronym that when translated from Italian means Italian Automobile Factory of Turin. Fiat is a successful company throughout the world, with many assembly factories in countries such as Brazil, India, and Poland. Fiats have not been actively sold and marketed by United States dealerships in more than two decades, so the opportunity to have a Fiat franchise is full of promise.

Many existing dealerships submitted proposals to Chrysler asking for permission to sell Fiats several months ago and the Fiat 500, a compact car, will begin hitting showroom floors in early March 2011. Chrysler received thousands of applications from dealership owners hoping to become Fiat distributors, many who are not currently associated with Chrysler or its subsidiaries. Of the more than 2,000 Chrysler dealerships across the United States, only a little more than 600 received formal invitations from Chrysler Corporation to submit franchise proposals.

For the time being, the Fiat 500 will be the only car model produced for sale in the states from the Italian based car company. Early reports state that there will be up to four different cuts or versions of the 500. A convertible, a sport edition, a petite four door, as well as a “High Roof” style. All of the cars will have a luxurious and unique Italian style that Fiat has been known for for many decades.

There are more than 115 markets that Chrysler has chosen to give franchises in. These areas have been thoroughly researched and show great potential to be big sellers in the area of compact cars. Fiat is often compared to the Mini-Cooper, but the 500 will actually be shorter, slimmer, and more streamlined than the Mini.

Anyone looking for smooth driving, gas saving compact car will have another choice on their car buying plate just in time for spring.